The problems that can arise in classifying a traveling salesperson were perhaps best illustrated in Hathaway.
In a subsequent case, (26) the court held that even though the IRS auditor had allowed statutory employee status for a traveling salesperson in 1995 and 1996, this would not preclude the IRS from asserting common law employee status for the years 2004 and 2005.
As an example of how the point-radius method would be applied, the locality for our traveling salesperson
would be assigned to his or her house, but the error radius would be 360 km (based on corner-to-corner distance across Wyoming).
In Niyitegyeka, the taxpayer was a traveling salesperson
For example, a traveling salesperson
with product video footage or testimonials could download video to a laptop, then play the video at the customer site to illustrate a point, showcase a product or deliver testimonials.
Solicitation" includes activities such as advertising or the use of traveling salespersons
It may be prudent for sellers with out-of-state activities to review their nexus status in other states, particularly if such sellers use traveling salespersons
, rent property, maintain inventories or engage in post-sale activities in the destination states.